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Current
Iowa law allows a $25,000 limitation and a $200,000 investment limitation for Internal
Revenue Code Section 179 expensing. The Iowa Legislature may enact a law that
conforms with the permanent federal increases to expensing limitations but it
is improbable that such law could be in place and effective by next week’s March
1 filing due date.

To
avoid being subject to penalties and interest, farming and commercial fishing
taxpayers and practitioners with clients who derive at least two-thirds of
their income from farming and commercial fishing can file returns and pay in
full any tax due under current Iowa law on or before March 1. If Iowa law is
changed after March 1 to provide for different expensing limitations, taxpayers
and practitioners can file amended returns and potentially receive refunds for
overpayment.

For more information about federal limitations to
section 179 expense limits, click
here. For more information, click here to visit the
Iowa Department of Revenue’s website or contact The Center for Agricultural Law
and Taxation at Iowa State University via email at ktidgren@iastate.edu
or phone at 515-294-6365.